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2022-12-31-accounts

EVANGELICAL MISSION ASSOCIATION

ALSO KNOWN AS GLOBAL CONNECTIONS

(A COMPANY LIMITED BY GUARANTEE)

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

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Company No: 3886596

EVANGELICAL MISSION ASSOCIATION Report of the Trustees for the Period Ended 31 December 2022

CONTENTS CONTENTS
1. Report of The Trustees................................................................................................................. 3
1.1
Reference and Administrative Details ................................................................................... 3
1.2
Structure, Governance & Management ................................................................................ 4
1.3
Our Aims, Objectives and Activities ...................................................................................... 5
1.4
Summary of Main Activities and Performance by Strategic Objective in 2022 .................... 6
1.5
Summary of Achievements and Performance against Operational Plans in 2022 ............ 10
1.6
Financial Review ................................................................................................................. 12
1.7
Future Plans and Activities .................................................................................................. 14
1.8
Responsibilities of The Trustees ......................................................................................... 14
2. Independent Examiner’s Report to The Evangelical Mission Association (“Global
Connections”) ........................................................................................................................... 16
3. Financial Statements .................................................................................................................. 17
3.1. Statement of Financial Activities (Including Income & Expenditure Account) – Year Ending 31
December 2022 ........................................................................................................................ 17
3.2. Balance Sheet (As At 31 December 2022) ................................................................................ 18
3.3. Notes To The Financial Statements For The Year Ending 31 December 2022 ....................... 19

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Company No: 3886596 EVANGELICAL MISSION ASSOCIATION Financial Statements for the Period Ended 31 December 2022

1. Report of The Trustees

The Trustees have pleasure in presenting their report and accounts for the year ended 31[st] December 2022.

1.1 Reference and Administrative Details

Legal Registration

The Evangelical Mission Association (EMA) is an incorporated charity limited by guarantee, not having share capital. It is registered in England and Wales with company number 3886596 and as a charity with charity number 1081966. It operates under the trading name of Global Connections (GC). The charity also uses Christian Vocations (CV) as a trading name for its vocational activities and has a sub-network in Northern Ireland called the Mission Action Partnership (MAP).

Board of Trustees (also Company Directors)

The following individuals have served as Trustees during the year and to the date of this report:

Mr Alan Tower Ms Deborah Kong (Treasurer) (resigned Dec 2022) Mrs Caroline Millar Mr Fola Oyeleye (commenced Oct 2022) Dr Peter Rowan Mrs Anu Ola (commenced Oct 2022) Mr Gary Sloan (resigned Dec 2022) Mr Chris Ducker (commenced Oct 2022) Trustee XX – Trustee with Dispensation Mr Dan Challis (commenced Oct 2022) Ms Jenny Brown (resigned May 2022) Mr James Vaughton (commenced Oct 2022) Mrs Louisa Evans (commenced Oct 2022)

Council

The following individuals, together with the Trustees, served as Council members during 2022:

Abi Willetts Gordon Darragh Natasha Rayan Andrew Hill Gordon Scoble Paul Bailie Brian Wakelin Henry Lu Paul Cooke Cindy Crossley Iván Neira Peter Brierley Claire Franks James Poole Peter Oyugi Connie Yu John McLernon Ray Porter Dan Yarnell Kevin Wren Robert Scott David Baldwin Lesley Cheesman Roger Purdom David Cook Mark Handley Siew H Ong Edward Issitt Mark Pickett Steve Smith Evan Winter Michael Prest Tony Uddin Girma Bishaw

Company Secretary during 2022

Mr Andy Law

Officers

Honorary President: Rev Stanley Davies Chairman of Board: Mr Alan Tower Hon Treasurer: Ms Deborah Kong

Key Management Personnel

Dr Harvey Kwiyani (Chief Executive Officer) Mr Andy Law (Chief Operating Officer)

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Company No: 3886596 EVANGELICAL MISSION ASSOCIATION Financial Statements for the Period Ended 31 December 2022

Registered Office

Caswell Road, Leamington Spa, CV31 1QD

Correspondence Address

Caswell Road, Leamington Spa, CV31 1QD

Independent Examiner

Paul Holland (FCMA), Bumble Cottage, Bailrigg Lane, Lancaster, LA1 4XP

Bankers

  1. Santander, Bridle Road, BOOTLE G1R 0AA

  2. Barclays Bank plc, 29 Borough High Street, LONDON SE1 1LY

  3. Kingdom Bank, Ruddington Fields Business Park, Mere Way, RUDDINGTON NG11 6JS

1.2 Structure, Governance & Management

The Evangelical Mission Association (EMA) is an incorporated charity limited by guarantee, not having share capital. It is registered in England and Wales with company number 3886596 and as a charity with charity number 1081966. The company is governed by revised Articles of Association which were adopted on 30[th] November 2011. It operates under the trading name of Global Connections (GC). It is referred to by this name throughout the report. The charity also uses Christian Vocations (CV) as a trading name for its vocational activities and the Northern Ireland Office is now called Mission Action Partnership (MAP). The Directors of the company are the trustees for the purposes of the Charities Act. The charity is registered with HMRC, reference XN77672.

The voting membership of the charity is its Council with elections taking place at company meetings following a nomination process agreed by the Council. The Council is representative of the network with the proportions agreed by the Council. The network has a number of non-voting categories which includes network members, network associates and individual associates. The basis for the different categories of the network is set out in the Articles of Association. The Council which served during 2022 is listed on page 1. The term of office is three years, and each Council member is eligible to serve for three terms. The Council’s role is to approve the overall vision, mission and values for the network and debate significant policy and missiological issues. The Council elects the Board of Trustees in accordance with the Articles of Association. The Council met twice during 2022.

1.2.2 The Board

The Board of Trustees, who held office during 2022, are listed on page 1. The year started with seven Trustees, which reduced to six in May following a resignation, then eventually increased to 10 by the end of the year following the addition of six new Trustees and two further resignations. Both of these latter resignations were due to the Trustee reaching the end of their third full term, and were recognised by the Council during the AGM in October 2022. All Trustees have received the Charity Commission’s publications ‘The Essential Trustee’, ‘Charities and Fund-raising’ and ‘Risk Framework’. The term of office is three years, and each Trustee is eligible to serve for three terms.

None of the Trustees had any financial interest in any transaction or arrangement with the Charity (other than as a Trustee for the charity or as a donor to the charity or as a staff member of a network member) during the period covered by this report. No Trustee receives any form of remuneration, other than the reimbursement of expenses. Any such expenses are listed in the notes to the Financial Statements.

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Company No: 3886596 EVANGELICAL MISSION ASSOCIATION Financial Statements for the Period Ended 31 December 2022

1.2.3 Board meetings and organisation of the charity

The operations of the charity are conducted in accordance with the Articles of Association. All the Trustees are active in the running of the charity and there is a clear set of roles and responsibilities for Trustees and staff. The Trustees met four times during the year, as well as participating in Council meetings and other network events. The Board are supported by an advisory committee on finance (including monitoring the pension and affinity schemes).

The Trustees approve and monitor the charity’s strategic objectives and retain oversight on the allocation of funding for activities, which are approved within the limits of its financial resources. Legal advice is sought when necessary.

A register of Trustees’ interests is held to ensure that there are no conflicts of interest. This is updated annually. Related party issues are fully declared in the financial statements. The Trustees abide by a clear conflict of interests policy which states that any Trustee with a potential conflict of interest is asked to leave the room and takes no part in the debate or decision. The trustees have reviewed and state that there is no Person of Significant Control.

1.2.4 Risk Management

Risks to the continued operation of the charity are monitored and formally reviewed by the Trustees at their meetings. This process seeks to identify all risks to which the charity is exposed, especially seeking to identify all the major risks to ensure that all appropriate mitigations are in place. The most prominent risks currently being managed by the charity relate to the need to replace the existing, aging website; competition from other Christian jobs advertisers, and the potential for the charity to be the victim of a cyber-attack. The Trustees are satisfied that adequate mitigations and contingency plans, appropriate to an organisation of its size, are in place to reduce the consequences of such risks. The charity maintains a register of the principal identified risks and this is maintained as a working document. Internal risks are minimised by the implementation of control procedures. External risks are minimised by regular monitoring of the external environment covering charity regulation and world mission issues.

1.3 Our Aims, Objectives and Activities

Our Purpose

Our charity’s purpose is to maintain, advance and promote the Christian faith throughout the world by such means as the Trustees shall think fit. As a membership network, Global Connections has always sought to do this through strengthening and improving the practice of the network members and the UK church in relation to world mission activities, and by the provision of resources that bring benefit and help support their missional activities.

Our Aims and Objectives

Although our aims and objectives will remain generally consistent from one year to the next, the means by which these are achieved (i.e., our activities) are reviewed each year. This review process considers what has been achieved in the last 12 months, what benefits have been realised for our members and what lessons can be learned. The review process also helps us ensure our aim, objectives and activities remained focused on our stated purposes.

The focus of our work and activities

The focus of our work continues to be the growth and development of a network of agencies, churches and individuals dedicated to growing God’s Kingdom through mission. Following a review of our strategy during 2022, the charity’s strapline and supporting statement were revised were revised to:

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Company No: 3886596 EVANGELICAL MISSION ASSOCIATION Financial Statements for the Period Ended 31 December 2022

Strapline: Together for the future of mission

Supporting Statement: ‘Connecting and equipping the UK church and mission community in a changing world.

The review also resulted in the revision of our key objectives to more accurately described and reflect the charity’s focus, intention and activity going forward. The objectives are:

  1. Connect — help the network build and strengthen relationships and develop collaborative partnerships across organisations, nationalities, and mission fields for the sake of prayer, mutual learning, and sharing of resources.

  2. Inspire —inspire, encourage, and motivate followers of Christ in the UK to participate in God's mission through relevant Christian ministry and service, both locally and globally.

  3. Explore — engage with the network in critical, reflective and fruitful conversations about the future of mission, in the context of world Christianity, and the role of the UK mission community in it.

  4. Equip —prepare and equip members for both local and global mission through the sharing of experience, best practice, and helpful resources.

  5. Model — to be an exemplar of best practice in all areas of GC’s internal operations.

The use of ‘Learn’ as a sixth key word / objective is no longer included as we believe it is incorporated in both Explore and Equip.

The Trustees believe that these keywords clarify the charity’s objectives and do not represent any fundamental change to the purpose or work of Global Connections, Christian Vocations or MAP.

In completing this review, we have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing our aims and objectives and in planning our future activities. In accordance with this guidance, the Trustees considered how planned activities will contribute to the agreed aims and objectives.

Who are our charity’s beneficiaries?

As a network organisation, the Trustees consider that the main beneficiaries are organisations and churches involved in mission activities (cross-culturally in the UK and around the world).

The charity aims to deliver events and resources to the network members and more widely, that will assist them in their mission of spreading and demonstrating the Christian message. Non-network members can attend events and use resources where available. The Trustees consider that the public is well served by strengthening and improving the practice of its members and the UK church in relation to mission activities in the UK and overseas, and by the provision of high-quality resources that bring wider public benefit.

1.4 Summary of Main Activities and Performance by Strategic Objective in 2022

The following points will look at specific work carried out against each of the organisational objectives in each strategy area, and will highlight their impact on the network of mission organisations that we represent.

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Company No: 3886596 EVANGELICAL MISSION ASSOCIATION Financial Statements for the Period Ended 31 December 2022

1.4.1 EXPLORE - exploring the future of mission

Under the guidance of Dr Harvey Kwiyani, CEO, a key focus of Global Connections’ activity in 2022 was the exploration of the racist and colonial history of mission. A central component of this work was a series of five Future of Mission events. At each event, delegates heard from a leading voice within the sector, encouraging us to consider an aspect of the traditional model of mission.

We have continued to consider the impact of these changes and challenges on the future of short-term mission, asking whether the current model employed for many short-term mission programmes needs to be reviewed. This will continue to shape discussions around short-term mission in the year ahead.

Through all such conversations, Global Connections continues to seek to facilitate dialogue around these issues; not to instruct members on what alternative models should be adopted, but to explore together whether change is required to redress the balance of perceived power and resource.

1.4.2 LEARN - learning together as a network

While use of this keyword stopped towards the end of 2022, Global Connections and MAP delivered a number of positive activities and outcomes against it during the year.

Despite no longer being a separate key word or objective, the Trustees continue to believe that one of the main ways Global Connections can bring maximum influence throughout the network is by organising forum meetings and events in both informal and formal settings so that members can learn and benefit from each other’s experiences and skills. Most of these activities are planned by a steering or core group drawn from the network, and programmes reflect the needs expressed by the network. A few highlights during the year included:

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Company No: 3886596 EVANGELICAL MISSION ASSOCIATION Financial Statements for the Period Ended 31 December 2022

the implications on mission partners (and their children) of sudden and / or forced relocation.

As a network of member organisations, Global Connections strives to facilitate individuals, agencies and network associates to connect with one another, to share experiences and learning, and offer mutual support. Global Connections and MAP have continued to facilitate these connections in the following ways:

The continued use of core and steering groups for the forums also provides greater breadth of input from within the membership. This ensures that a range of voices are heard, and perspectives considered in developing plans for learning and sharing throughout the year.

Christian Vocations (CV) is a ministry of Global Connections and this continues to be an alternative trading name for vocational activities.

A few of the key achievements for Christian Vocations in 2022 were:

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Company No: 3886596 EVANGELICAL MISSION ASSOCIATION Financial Statements for the Period Ended 31 December 2022

The staff team have continued to focus on signposting members to a range of value resources at source. This is beneficial as it reduces the demand on a small staff team to gather and collate the information required to produce resources, and it ensures that members get important information from the source, without interpretation or missing context. This proved especially valuable during the pandemic, and we believe it continues to be the most appropriate model to equip our members.

In addition to this signposting approach, Global connections and MAP continued to equip members with a range of important resources including:

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Company No: 3886596 EVANGELICAL MISSION ASSOCIATION Financial Statements for the Period Ended 31 December 2022

1.5 Summary of Achievements and Performance against Operational Plans in 2022

The Trustees are committed to improving the charity’s practice and ensuring that it delivers public benefit by supporting the activities of the members of the network. The strategy sets out clear indicators for monitoring how activities impact the stated aims, and this is evaluated by management and reported at each Board meeting.

The principal achievements in 2022 centred on the Charity’s focus on the future of mission, tackling the issues of racism and colonialism in mission, and continuing to support members of the network as they started to consider future implications for their own operational models.

In the interest of continuation and consistency, this section of the report will focus on how the charity performed against the plans and future activities set out in the 2021 Annual Trustees Report. These were:

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Company No: 3886596 EVANGELICAL MISSION ASSOCIATION Financial Statements for the Period Ended 31 December 2022

central to our work in 2022. The 5 seminars that we hosted, all of which had at least 65 people in attendance, plus several other conversations we had with some members of the network (Harvey Kwiyani, our CEO, spoke at several events of member-organisations) have been impactful.

b. Expand our “The Future of Mission” seminar series and develop a “Passion for Mission” podcast to provide thought leadership on issues related to mission in the UK and around the world.

The podcast has yet to happen, but the series of five future of mission events throughout the year were well attended and attracted positive feedback. Through his monthly contributions to our Network News monthly e-newsletter, Harvey Kwiyani (CEO) continues to engage the issues that need to be considered by the wider network. We will continue to develop this workstream in the months ahead.

Several refinements have been implemented over the last 12 months including the utilisation of web-based project and workload management tools, and extended use of Microsoft 365 applications to replace the use of third party, paid for, alternatives. Resolution of a small number of queries regarding the charity’s VAT status has provided clarity on the ability to issue invoices for membership fees. This change was received positively by members, and will save significant time previously spent by the staff team chasing annual membership contributions.

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Company No: 3886596 EVANGELICAL MISSION ASSOCIATION Financial Statements for the Period Ended 31 December 2022

ahead. We continue to refine the terminology and phrasing of our communications with members, to reinforce the connection between MAP and Global Connections. This includes expanding the availability of Global Connections member benefits to MAP members.

Due to the extended focus in other areas of work, activity in this area was reduced. However, we continue to point members towards helpful resources, guides and tools through the range of regular e-newsletters (i.e. Network News, MAP Newsletter, Jobseekers Matter and Recruitment Matters).

k. Maintain appropriate systems to ensure and record that all Trustees are aware of and compliant with the HMRC guidance on Disqualification Rules for Charity Trustees and HM Revenues guidance on Fit & Proper persons.

Following its approval in 2021, the Board of Trustees continue to comply with a number of standard systems and processes, set out in the charity’s Board Handbook, to ensure that new and existing Trustees are, and remain, compliant with the relevant standards and regulations.

1.6 Financial Review

1.6.1 Financial Results

Following significant reductions during 2021, income to the unrestricted (general) fund in 2022 from the three key income streams increased, resulting in a surplus of £10,580. Income from jobs advertising through Christian Vocations increased from £70,904 in 2021 to £80,272 in 2022 which represented an overperformance of £9,272 against the budget of £71,000. Events related income decreased from £16,100 in 2021 to £15,221 (against a budget of £21,500), and membership contributions increased from £160,125 in 2021 to £162,384 in 2022 (against a budget of £140,000). Additional income from unexpected donations and a legacy, contributed to an overperformance of £9,202 against the general donations budget.

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Company No: 3886596 EVANGELICAL MISSION ASSOCIATION Financial Statements for the Period Ended 31 December 2022

Although total income decreased by 0.34% from £299,191 in 2021 to £298,174 in 2022, this reduction was less than expected for the reasons previously stated.

Total expenditure increased by 32% from £218,569 in 2021 to £287,594 in 2022 (against a budget of £301,201). The increase on 2021 was the result of having finally recruited to all vacancies and the additional expenditure associated with development of the new website. However, short periods of vacancy at the start of the year, resulted in an underspend of £5,932 against the budget for all staff and contractor expenses. The other main contributors to the underspend against the budgeted expenditure were £5,361 against event related costs and £4,745 earmarked to the new website development. The latter of which will be carried over to 2023. These underspends were offset in part by greater than expected expenditure against staff travel (£1,290), governance associate costs (£2,117) and several smaller combined expenditures.

The additional income and reduction in budgeted expenditure combined resulted in a general fund year end surplus of £10,580. This represented an overperformance of £45,132 against budget for the full year of -£34,551.

The Trustees express again their dependence on God and gratitude for His provision of sufficient funding. It is envisaged that the healthy financial reserves will now enable the charity to make meaningful progress on a number of projects, including completion of the new website and commencement of focused programme of intercultural engagement. It also allows the charity to increase its network engagements while also continuing to speak into mission discourse with similar organisations in Europe.

Restricted funds activity continues to centre on various mission promotion events organised by the cooperation of member agencies in the GC network and facilitated financially by the GC staff team.

1.6.2 Free Reserves Policy

Free reserves are those unrestricted funds not invested in fixed assets nor designated for specific purposes or otherwise committed. This reserve is a means of protecting the organisation against uncertainty over future income or potential emergency expenditure.

The current Board policy is to hold an upper free reserve limit at or above 2.5 months’ expenditure, plus an amount to cover the cost of closure, the total of which currently equates to £98,907. This is referred to as the ‘Early Warning’ Reserve limit. This signifies the point at which the Board must consider the steps to be taken to prevent further depletion of the reserves, and covers the charity’s minimum contractual liabilities and standard operating costs, whilst providing a buffer for unexpected expenditure or loss of income. In addition to this, it is the Board’s policy to recognise the lower ‘Absolute Free Reserve Limit’ which signifies the point at which a decision to continue trading must be taken.

The actual free reserves are £218,714, which is the equivalent of approximately eight months expenditure.

1.6.3 Going concern

The Trustees regularly review the medium-term financial projections for the charitable company, and recognise the need to closely monitor and respond to budgetary fluctuations as and when required. Although it is recognised that there continue to be some risks that are beyond the charity’s control, it is the Board’s view that appropriate mitigations are in place and will be monitored on a quarterly basis, or more frequently if appropriate. Although the Trustees have approved a deficit budget of £30,081 for 2023, with a further potential deficit budget of £28,269 in 2024, it is noted that this is based on conservative income and expenditure forecasting. This is based on uncertainty regarding the financial security of some

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Company No: 3886596 EVANGELICAL MISSION ASSOCIATION Financial Statements for the Period Ended 31 December 2022

network members, and the possibility that the size of the network will reduced over the next two years. When combined with known higher operational costs associated with having a full staff team (this will amount to c£17.8k additional expenditure for the full year), and other general uplifts impacted by inflation (for example, higher travel costs and service charges), it is anticipated that the charity will not deliver a surplus in the next two years.

Despite this, the charity does not forecast passing below its absolute free reserves limit of £39,865 for at least 12 months from the date of this report. Consequently, the Trustees are satisfied that the company is in adequate financial health and the going concern basis is appropriate for their accounting.

The Board’s policy is to retain surplus liquid funds in interest bearing accounts, generally up to £85,000 per banking institution, currently using the Santander Deposit Fund and Kingdom Bank.

Following discussions with the Board of Trustees, Council and staff, the executive management team continue to progress the development of a detailed strategic plan. The central strategic focus of this plan remains the consideration of the future of mission and ensuring the charity’s future financial viability. The main plans and activities of the charity in 2023 are a mix of short-term priorities and on-going delivery of the strategic objectives:

1.8 Responsibilities of The Trustees

The trustees (who are also the directors for the purposes of Company Law) are responsible for preparing the trustees’ report and the financial statements in accordance with general applicable law and United Kingdom Accounting Standards (United Kingdom General Accepted Accounting Practice).

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Company No: 3886596 EVANGELICAL MISSION ASSOCIATION Financial Statements for the Period Ended 31 December 2022

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources of the charitable company for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safekeeping the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

For the financial year in question the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies. No members have required the company to obtain an audit of its accounts for the year in question in accordance with section 476 of the Companies Act 2006. The directors acknowledge their responsibility for complying with the requirement of the Act with respect to accounting records and for the preparation of accounts. These accounts have been prepared in accordance with the micro-entity provisions.

The Trustees’ Report was approved by the Trustees on 24/05/23 and signed on their behalf by:

Mr Alan Tower (Chair):

Date: 24/05/23

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Company No: 3886596 EVANGELICAL MISSION ASSOCIATION Financial Statements for the Period Ended 31 December 2022

2. Independent Examiner’s Report to The Evangelical Mission Association (“Global Connections”)

I report on the charity trustees on my examination of the accounts of the Company for the year ended 31 December 2022.

Responsibilities and basis of report

As the charity’s trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner’s statement

Since the Company’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of Chartered Institute of Management Accountants, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

  1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view which is not a matter considered as part of an independent examination; or

  4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Signed:

Name: Paul Holland, FCMA Fellow of Chartered Institute of Management Accountants

Address: Bumble Cottage, Bailrigg Lane, Lancaster, LA1 4XP Date: 1[st] June 2023

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Company No: 3886596 EVANGELICAL MISSION ASSOCIATION Financial Statements for the Period Ended 31 December 2022

3. Financial Statements

3.1. Statement of Financial Activities (Including Income & Expenditure Account) – Year

Ending 31 December 2022

Note
Income from:
Donations and legacies
3
Charitable activities
4
Investments
5
Total income
Expenditure on:
Raising funds
Charitable activities
Total expenditure
6
Net income/(expenditure)
7
Transfers between funds
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Unrestricted
Funds
Restricted
Funds
£
£
29,202
893
267,368
200
511
0		 2022
Total
£
30,095
267,568
511		 2021
Total
£
34,368
264,672
150
297,081
1,093		 298,174 299,191
6,030
0
280,406
1,158		 6,030
281,564		 4,914
213,655
286,436
1,158		 287,594 218,569
10,645
-65
0
0		 10,580
0		 80,622
0
10,645
-65
208,069
12,046		 10,580
220,115		 80,622
139,493
218,714
11,981		 230,695 220,115

The Statement of Financial Activities includes all gains and losses recognised in the year.

All incoming resources and resources expended derive from continuing activities.

Full comparative figures for 2021 are show in Note 2.

The notes on pages 19 to 28 form part of these financial statements.

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Company No: 3886596 EVANGELICAL MISSION ASSOCIATION Financial Statements for the Period Ended 31 December 2022

3.2. Balance Sheet (As At 31 December 2022)

Note
FIXED ASSETS
Tangible assets
10
CURRENT ASSETS
Debtors
11
Cash at bank and in hand
Creditors:
Amounts falling due within one
year
12
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
Represented by:
UNRESTRICTED FUNDS
15
General funds
Designated funds
RESTRICTED FUNDS
16
TOTAL FUNDS		 Unrestricted
Restricted
Funds
Funds
£
£
-
-
12,079
217,571
11,981		 2022
Total
£
-
12,079
229,552		 2021
Total
£
-
12,688
218,004
229,650
11,981
-10,936
-		 241,631
-10,936		 230,692
-10,577
218,714
11,981		 230,695 220,115
218,714
11,981		 230,695 220,115
218,714
-		 208,069
-
218,714
11,981		 208,069
12,046
230,695 220,115

The notes on pages 19 to 28 form part of these financial statements. Approved by the Board on 24/05/23 and signed on their behalf by:

Mr Alan Tower (Chair):

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Company No: 3886596 EVANGELICAL MISSION ASSOCIATION Financial Statements for the Period Ended 31 December 2022

Company limited by guarantee, Number 3886596

3.3. Notes To The Financial Statements For The Year Ending 31 December 2022

1 ACCOUNTING POLICIES

The financial statements have been prepared under the Companies Act 2006 and in accordance with the Charities Statement of Recommended Practice (Charities SORP (FRS 102)), Financial Reporting standard 102 (FRS102) and the Charities Act 2011. The particular accounting policies adopted are described below.

(a) Accounting convention

The financial statements have been prepared under the historical cost convention. The charity meets the definition of a public benefit entity under FRS 102.

(b) Depreciation

Depreciation is provided on tangible assets to write off their cost over their estimated useful lives at rates of 20% (furniture and equipment) and 33.3% (computers) on the straight line method, on a quarterly basis. Capitalisation threshold is £1,000 per separable item including irrecoverable VAT.

(c) Leasing

Costs in respect of operating leases are charged as lease payments are due.

(d) Stocks

Stock is included at the lower of cost or net realisable value.

(e) Fund accounting

Funds held by the charity are classified as one of:

Unrestricted general funds – These are funds which can be used in accordance with the charitable objects at the discretion of the trustees.

Designated funds – These are funds set aside by the trustees out of unrestricted general funds for specific purposes or projects.

Restricted funds – These are funds that can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

(f) Pension costs

Pension costs are charged in the period in which they are payable to the scheme.

(g) Irrecoverable VAT

Irrecoverable VAT is included in the cost of the expense to which it relates.

(h) Income

All income is accounted for on a receivable basis. Income received for an event to take place in a future accounting period, whether fees or donations, is deferred to that accounting period and is held at the yearend as a liability.

(i) Legacies

Legacy income is accounted for when receivable. Legacies are regarded as receivable when the charity is notified of its legal entitlement; the amount due is quantifiable; and its ultimate receipt by the charity is probable.

Page 19 of 29

Company No: 3886596 EVANGELICAL MISSION ASSOCIATION Financial Statements for the Period Ended 31 December 2022

(j) Donated services and facilities

Donated services and facilities are recognised as income and expenditure of the charity. Seconded staff time is valued at the cost of that time to the seconding agency. Donated meeting facilities are valued at the normal charge made for those facilities.

(k) Expenditure

Liabilities to pay expenses are accounted for when payable. Expenditure is accounted for on an accruals basis. Where categories of expenditure relate to more than one expenditure heading in the SOFA, these are allocated between headings on the basis of an estimate of staff time spent thereon.

(l) Fundraising and publicity expenditure

This comprises all expenditure relating to raising funds for the charity.

(m) Cost of activities in furtherance of the charity’s objects

This comprises all expenditure directly related to the objects of the charity.

(n) Governance costs

This comprises expenditure relating to compliance with constitutional and statutory requirements and other costs, which cannot be treated as cost of activities in furtherance of the charity’s objects.

(o) Taxation

The company is a registered charity and is exempt from taxation on its charitable activities.

Page 20 of 29

Company No: 3886596 EVANGELICAL MISSION ASSOCIATION Financial Statements for the Period Ended 31 December 2022

2 STATEMENT OF FINANCIAL ACTIVITIES - COMPARATIVE FIGURES FOR 2021

Note
Income from:
Donations and legacies
3
Charitable activities
4
Investments
5
Total income
Expenditure on:
Raising funds
Charitable activities
Total expenditure
6
Net income/(expenditure)
7
Transfers between funds
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Unrestricted
Funds
Restricted
Funds
2021 Total
£
£
£
33,318
1,050
34,368
267,828
-3,156
264,672
150
-
150
301,297
-2,106
299,191
4,914
-
4,914
213,235
420
213,655
218,149
420
218,569
83,148
-2,526
80,622
-
-
-
83,148
-2,526
80,622
124,921
14,572
139,493
208,069
12,046
220,115

Page 21 of 29

Company No: 3886596 EVANGELICAL MISSION ASSOCIATION Financial Statements for the Period Ended 31 December 2022

Balance Sheet comparative figures for 2021:

Note
FIXED ASSETS
Tangible assets
10
CURRENT ASSETS
Debtors
11
Cash at bank and in hand
Creditors:
Amounts falling due within one
year
12
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
Represented by:
UNRESTRICTED FUNDS
15
General funds
Designated funds
RESTRICTED FUNDS
16
TOTAL FUNDS		 Unrestricted
Restricted
Funds
Funds
£
£
-
-
12,688
205,958
12,046		 2021
Total
£
-
12,688
218,004
218,646
12,046
-10,577		 230,692
-10,577
208,069
12,046		 220,115
208,069
12,046		 220,115
208,069
-
208,069
12,046
220,115

Page 22 of 29

Company No: 3886596 EVANGELICAL MISSION ASSOCIATION Financial Statements for the Period Ended 31 December 2022

3 DONATIONS

General Donations
Legacies
Trusts and Grants
Comparative figures for 2021:
General Donations
Legacies
Trusts and Grants		 Unrestricted
£
9,208
5,494
14,500		 Restricted
£

893

-

-		 2022
Total
£

10,101
5,494
14,500
29,202
893
30,095
Unrestricted
£
16,662
2,000
14,656		 Restricted
£
1,050
-
-		 2021
Total
£
17,712
2,000
14,656
33,318
1,050
34,368

4 INCOME FROM CHARITABLE ACTIVITIES

Conferences and Events
Contributions from Members
Direct Charitable sales
Affinity schemes &
miscellaneous trading

Comparative figures for 2021:


Conferences and Events
Contributions from Members
Direct Charitable sales
Affinity schemes &
miscellaneous trading
 Unrestricted
£
15,221
162,384
81,096
8,667		 Restricted
£

-

200

-

-		 2022
Total
£
15,221

162,584
81,096
8,667
267,368
£200		 267,568
Unrestricted
£
19,780
160,125
71,610
16,313		 Restricted
£
-3,436*
280
-
-		 2021
Total
£
16,344
160,405
71,610
16,313
267,828
-3,156		 264,672

*Restricted ‘Conferences and Events’ is negative because of a refund of £3436 made to four supporting members for the GOfest2020 which did not go ahead.

Page 23 of 29

Company No: 3886596 EVANGELICAL MISSION ASSOCIATION Financial Statements for the Period Ended 31 December 2022

5 INVESTMENT INCOME

Interest received on cash
balances
Comparative figures for 2021
OTAL EXPENDITURE
Staff costs
Outsourced contractors
Office property,
administration, staff travel
Promotions and resources
Conference and events
Examination of accounts
Miscellaneous expenses
Comparative figures for
2021
Staff costs
Outsourced contractors
Office property,
administration, staff travel
Promotions and resources
Conference and events
Examination of accounts		 2022
Unrestricted
Restricted
Total
£
£
£
511
-
511

2021
Unrestricted
Restricted
Total
£
£
£
150
-
150
Cost of
activities in
furtherance
Cost of
of the
generating
charity’s
Governance
2022
funds
objects
Costs
Total
£
£
£
£
4,877
184,367
5,853
195,097
135
5,112
162
5,409
1,018
38,450
1,221
40,689
-
31,781
-
31,781
-
7,792
-
7,792
-
-
800
800
-
2,508
3,518
6,026
6,030
270,010
11,554
287,594
Cost of
generating
funds
Cost of
activities in
furtherance
of the
charity’s
objects
Governance
Costs
2021
Total
£
£
£
£
3,731
141,039
4,477
149,247
134
5,078
161
5,373
1,048
39,623
1,258
41,929
-
1,264
-
1,264
-
17,611
-
17,611
-
-
800
800

TOTAL EXPENDITURE

Page 24 of 29

Company No: 3886596 EVANGELICAL MISSION ASSOCIATION Financial Statements for the Period Ended 31 December 2022

Miscellaneous expenses
-
1,078
4,914
205,692
7
NET MOVEMENT IN FUNDS
This is stated after charging:
Lease of property
Lease of office equipment
Examiner's fee
8
TRUSTEE AND EMPLOYEE INFORMATION
a)Employee information
The average number of staff employed during the year
was:
The average number of full-time equivalent
staff was:
Staff emoluments
Salaries
Social security
Pension and life assurance costs
Training		 1,266
2,344
7,963
218,569
2022
2021
£
£
10,375
11,513
2,691
2,639
800
800
2022
2021
8
8
6
5
£
£
168,655
129,042
9,027
6,553
17,415
13,653
400
335		 1,266
2,344
7,963
218,569
2022
2021
£
£
10,375
11,513
2,691
2,639
800
800
2022
2021
8
8
6
5
£
£
168,655
129,042
9,027
6,553
17,415
13,653
400
335
195,497
149,583

Employee benefits to key management personnel for the year totalled £91,290 (2021: £61,323).

There were no employees with emoluments above £60,000 in either the current or previous year.

b) Trustee information

No remuneration was paid to, or waived by, any trustee during the year (£NIL in 2021). Expenses of £518 for travel were reimbursed to five trustees during the year (£144 to two trustees in 2021).

9 PENSION SCHEME ARRANGEMENTS

Defined contribution scheme

The charity’s staff belong to one of two defined contribution pension schemes. The schemes' assets are held separately from those of the charity in independently administered funds. The pension cost charge represents contributions payable to the funds, which amounted to £17,087 (2021: £13,207).

Page 25 of 29

Company No: 3886596 EVANGELICAL MISSION ASSOCIATION Financial Statements for the Period Ended 31 December 2022

10
TANGIBLE ASSETS
Fixed assets held for use by the charity
Cost
At 1stJanuary 2022
Additions
Disposals
As at 31st December 2022

Depreciation
At 1stJanuary 2022
Charge for the year
Released on disposal
As at 31st December 2022
Net book value
As at 31st December 2022
As at 31st December 2021
11
DEBTORS AND PREPAYMENTS
Taxation: VAT recoverable
Debtors
Prepayments
12
CREDITORS
Taxation and social security
Deferred income
Accrued expenses
Accrued holiday pay
Cancelled Events		 Computer
Office
Total
Total		 Computer
Office
Total
Total		 Computer
Office
Total
Total		 Computer
Office
Total
Total

equipment
2022
10,052
1,175
11,227
-
-
-
-
-
-		 2021
11,227
-
-
10,052
1,175
11,227		 11,227
10,052
1,175
11,227
-
-
-
-
-
-		 11,227
-
-
10,052
1,175
11,227		 11,227
- -
-		 -
- -
-		 -
2022
2021
7,682
10,064
4,396
2,660
12,078
12,724
2022
£
3,204		 2021
£

2,617
-

7,183

777
-
-
7,278
454
-
10,936
10,577

Page 26 of 29

Company No: 3886596 EVANGELICAL MISSION ASSOCIATION Financial Statements for the Period Ended 31 December 2022

13 COMMITMENTS

The future minimum lease payments to which the organisation is committed under operating leases in the coming years are as follows:

2022
Lease payments due:
Total
Within one year:
Land & buildings (inc. service
charges)
9,350
Other operating leases
2,820
Within two to five years:
Land & buildings
-
Other operating leases
-		 2021
Total

9,350

2,810
-
-

14 RELATED PARTY TRANSACTIONS

There were no individual related party transactions during the year which require disclosure (£NIL in 2021). Aggregate donations in the year without condition from trustees and key management personnel totalled zero.

15 UNRESTRICTED FUNDS

General Fund Balance
at
Movement in funds
Balance
at
1st Jan
31st Dec
2022
Income
Expenditure
Transfers
2022
£
£
£
£
£
208,069 297,081
286,436
-
218,714
208,069 297,081
286,436
-
218,714

Comparative figures for 2021:

General Fund
Re-konnect camps		 Balance
at 1st
Jan
Movement in funds
Balance
at 31st
Dec
2021
Income
Expenditure
Transfers
2021
£
£
£
£
£
120,720
301,297
-210,268
-3,680
208,069
4,201
-
-7,881
3,680
-		 Balance
at 1st
Jan
Movement in funds
Balance
at 31st
Dec
2021
Income
Expenditure
Transfers
2021
£
£
£
£
£
120,720
301,297
-210,268
-3,680
208,069
4,201
-
-7,881
3,680
-
124,921
301,297
-218,149		 -
208,069

Page 27 of 29

Company No: 3886596 EVANGELICAL MISSION ASSOCIATION Financial Statements for the Period Ended 31 December 2022

Re-Konnect Camps: the transfer of rekonnect to The Sheiling Trust was completed in February 2021. There was no rekonnect activity under the name of Global Connections in 2022.

16 RESTRICTED FUNDS

CRIB
GC Staff Support
Lausanne General
Network Events
Staff Ministry
H4M (Hope for Muslims)
Regional Reps
Total Restricted Funds		 Balance
Movement in funds
Balance
at 1st
January
Income Expenditure Transfers
at 31st
Dec
2022
2022
£
£
£
£
£
1,007
-
1,007
-
-
-
-
-
-
-
3,845
833
-
-
4,677
1,326
-
-
-
1,326
334
-
-
-
334
4,489
-
-
-
4,490
1,045
260
151
-
1,154
12,046
1,093
1,158
-
11,981

The Funds are maintained for the following purposes:

CRIB: CRIB is a network and events for Christians involved in mission to Muslims in Britain. This fund represents the income and expenditure involved in the running of events by the CRIB network. All CRIB funds were transferred to The Sheiling Trust in accordance with an agreed transfer arrangement that finalised in February 2022.

GC Staff Support: Donations received for funding salaries of specific members of GC staff. The balance of salaries is funded by unrestricted funds.

Lausanne General: Donations received for the work of Lausanne Committee for World Evangelisation.

Network Events: Mission promotion events organised cooperatively by member agencies. Staff ministry: Relates to monies given to support the ministry of Bryan and Marion Knell. Bryan is a former staff member.

H4M (Hope for Muslims): The fund comes from income of the 2015 UK tour event attendance, book sales and donations for ministry to Syrian refugees. The donations were distributed between seven member agencies of Global Connections who cooperated in presenting the tour events.

Regional Reps : This fund covers travel and other operating expenses of representative staff from various mission agencies working together under the banner of GC.

Comparative 2021 movements

Balance Movement in funds Movement in funds Balance
at 1st at 31st
January Income Expenditure Transfers Dec
2021 2021
£ £ £ £ £
CRIB 809 348 -150 - 1,007
GC Staff Support - 220 -220 - -
Lausanne General 3,363 481 - - 3,845
Network Events 4,762 -3,436 - - 1,326

Page 28 of 29

Company No: 3886596 EVANGELICAL MISSION ASSOCIATION

Financial Statements for the Period Ended 31 December 2022

Staff Ministry
H4M (Hope for Muslims)
Regional Reps
Total Restricted Funds		 334
-
-
-
334
4,489
-
-
-
4,490
815
280
-50
-
1,045
14,572
-2,106
-420
-
12,046

Page 29 of 29